Nifty volatility has gone up with the sharp downmoves. The volatility was so high on Friday that it was a challenge to trade the Nifty and the stoplosses had to be in place, else one could have got wiped out in 15 min flat. The Nifty moved 300 plus point on one single day. So whereas in the morning it opened at 5750, it quickly went down to 5700 and then to 5850 and then closed at 5650 odd levels.
I had longs at 5728 which I had to cover in the morning, and went long at 5750 & then Nifty went to 5850, at that point I had put a stop loss of 5825, which quickly got triggered. The only mistake I did was not to go short at 5800, but honestly that was because the markets went down so fast that it did not even give me the chance to go short.
Finally I shorted at 5730 and then covered at 5665. So in a day I could only catch 120 odd points on the nifty whereas the nifty swinged by around 300 + points!!!
In such markets it is a good opportunity to make money very quickly however with stops else its the easiest way to completely lose the capital in a single day.
Moving ahead the markets still look weak, however the bottom cannot be very far, infact I think if Monday is a gap down open then it might be prudent to go contrary long, however with very very strict stoploss and again its just a very short trading bounceback. However the trend is down only until the Nifty breaches 5850, then 5875 and finally 5950. So for people who are not savvy in trading there is no point going long before 5950 or short now since the markets have already gone down by 600 points this month!!!
Happy Trading!
No comments:
Post a Comment